Four project suggestions for bond financing

During a meeting on Wednesday the Policy Council, headed by Prime Minister Norov Altankhuyag, were issued a suggestion and agreed to finance four projects via Government bonds. The Policy Council is responsible for selecting projects and programs to be financed by Government bond investment, setting standards, measuring risks and conducting audits during the process.

Mongolia issued its government-guaranteed bond with the name “Chinggis” to raise money from the international stock market. Mongolia received a 1.5 billion US dollar introductory sovereign international debt offering.

The suggestion issued by the Policy Council is that the bond investment should finance four projects at first.

The Government has planned to connect Ulaanbaatar city to all aimags with paved roads by 2016. In the first phase of the plan a 1347 km paved road network between Dornod, Dornogovi, Dundgovi, Bayankhongor and Khuvsgul will be financed by the bond investment.

Rebuilding and construction of T-shaped intersections into 4-way intersections on 33 roads that are subject to heavy traffic in the city center will also be financed from the bond investment.

The Policy Council also suggested the financing of the construction of two horizontal high ways along the Tuul and Selbe rivers.

Another suggestion was to finance the 300 MW capacity Power Plant based at the Tavantolgoi mine, with a start-up of a 1800 km long railway project in the coming years.

The Policy Council will deliver the suggestions to the Government to be discussed in the cabinet meeting on February 23rd.